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Customer service guarantees are becoming less common because service companies
can't live up to their promises.
Laws such as the Pure Food and Drug Act were passed because pro-competition
legislation did not protect consumers very well in some areas.
Problems of matching supply and demand for a new product often occur when a
marketing plan calls for quick expansion into many different types of channels at the
same time.
The ArrowPoint Company has just modified and enlarged its product line to meet the
changing needs of its current customers. This is an example of "market development."
Product advertising is aimed at final consumers; institutional advertising is aimed at
intermediaries.
In planning a new strategy or reorganization, it's important to keep in mind that each
change may require several other changes, and each change may take time.
The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a
firm that uses selective distribution.
The Magnuson-Moss Act regulates product warranties.
The adoption curve shows that it is important to keep the promotion effort the same as
time passesso consumers won't be confused.
Marketing is basically selling and advertising.
Consumer satisfaction at the micro level cannot be measured because firms cannot
determine how well their products satisfy customers.
"Ideal market exposure" means selling a product through all intermediaries willing to
stock and sell it.
Market segmentation is a two-step process that involves naming broad product-markets
and segmenting these broad product-markets in order to select target markets and
develop suitable marketing mixes.
Validity concerns the extent to which data measures what it is intended to measure.
As B2B buyers rely more on social networks, it's more likely that communications from
sellers will have even more influence.
In the United States, the aim of the economic system has been to satisfy consumers'
needs as theythe consumerssee them.
A new-product development process helps make sure that new ideas for products are
carefully studied and good ideas are marketed profitably.
Digital self-service increases costs.
The text argues that the plight of the homeless is a result of the forces of market
competition in our market-directed economies.
Customer lifetime value is the total stream of purchases that a customer could
contribute to the company over the length of the relationship.
The reaction of Italian women to Swiffer is an example of cultural influence.
Moen, a maker of plumbing fixtures, employs a major accounts sales force and gives
special attention and support to the firm's largest accounts such as Home Depot and
Lowe's.
A product-market is a market with broadly similar needsand sellers offering various,
often diverse, ways of satisfying those needs.
Focus group interviews are a form of quantitative research.
Joint venturing gives a firm less control than if it owns a separate subsidiary.
Marketing, in the literal sense, means 'selling" or "advertising."
Items with lower markups may be more profitableif the stockturn is higher.
Most retail and wholesale buyers see themselves as purchasing agents for their target
customers.
Advertising can usually get sales results sooner than sales promotion.
All customers have the same reference price for the same basic type of purchase.
A consumer's belief about a product may have a positive or negative effect on his or her
attitude about the product.
"Positioning" shows how proposed and/or present brands are located in a marketas seen
by customers.
Adopting the marketing concept rarely requires any change in a firm's attitudes,
organization structure, or management methods and procedures.
At zero output, total variable cost is zero.
With ISO 9000 someone is responsible for quality at every step.
A "Buy American" campaign is an example of:
A. transnationalism.
B. nationalism.
C. environmentalism.
D. consumerism.
E. federalism.
Given the U.S. economy's basic objective, the best measure of the effectiveness of the
U.S. macro-marketing system is:
A. GDP growth.
B. the equality of income distribution.
C. how efficiently resources are used.
D. how many new products are introduced.
E. the level of consumer satisfaction.
Each of the following businesses is likely to have costs under 5 percent of sales
EXCEPT:
A. Import agent for rare ceramic works.
B. Manufacturer's agent for plastics producers.
C. Selling agent for musical equipment.
D. Single-line wholesaler of industrial tools.
E. Export cyberbroker for handmade carpets.
Acme Corporation is currently experiencing rising sales for a new product idea it
pioneered several months ago. Profits are also increasing, so other competitors are now
entering the market with similar products. The competitive situation is changing from
monopoly to monopolistic competition. In which stage of the product life cycle is Acme
Corporation operating?
A. Market establishment.
B. Market introduction.
C. Market growth.
D. Market maturity.
E. Sales decline.
When a producer has won brand insistence in its target marketand just wants to keep the
product's name before the publicit can use:
A. reminder advertising.
B. pioneering advertising.
C. direct-action advertising.
D. comparative advertising.
E. institutional advertising.
The "contribution-margin approach" to marketing cost analysis:
A. Focuses attention on the allocation of fixed costs.
B. Is mainly concerned with the allocation of variable costs.
C. Always leads to the same conclusions as the "full-cost approach."
D. Is always preferred to the "full-cost approach."
E. None of these are correct.
Regarding our MACRO-marketing system:
A. consumers would be better off if our macro-marketing system were in pure
competitionrather than monopolistic competition.
B. marketing makes people buy things they don't need.
C. advertising can actually lower final consumer pricesif it helps achieve economies of
scale.
D. monopolistic competition leads to higher prices, restriction of output, a waste of
resources, and greater consumer dissatisfaction.
E. All of these alternatives are correct.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customersa mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each optionand the distribution service levels that can be achievedare as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
When United Tools considers its total inventory cost, which of the following would
NOT be included?
A. Costs of damage to products while in inventory.
B. Costs of inventory becoming obsolete.
C. Cost of a storage facility.
D. Cost of capital invested in the inventory.
E. All of these should be included in total inventory cost.
Regarding the organization of the product classes, an impulse product is to an
emergency product as
A. a new unsought product is to a regularly unsought product.
B. an installation is to a homogeneous shopping product.
C. an impulse product is to a convenience product.
D. a consumer product is to a business product.
E. a shopping product is to a specialty product.
An Embassy Suites hotel offers an inexpensive "Family Luncheon Buffet" on Sundays
to get customers for its restaurant that is filled by business travelers during week days.
This effort to get new customers for the available facility is an example of
A. a production orientation.
B. product development.
C. market development.
D. diversification.
E. market penetration.
The marketing manager for a financial services firm knows that customer preferences
for mutual funds and bond accounts will differ depending on the current interest rate.
She must plan her offerings with the _____ environment in mind.
A. economic
B. social
C. technological
D. cultural
E. legal
_____ are the categories to which various costs are charged in the normal financial
accounting cycle.
A. Natural accounts
B. Live accounts
C. Functional accounts
D. Defined accounts
E. Normal accounts
Human resource issues include:
A. retraining employees for other jobs within the company.
B. deciding what to do when a job is not being performed well.
C. recruiting and hiring new employees.
D. deciding how people will be compensated.
E. All of these.
In the short run at least, which of the following is usually beyond the control of the
marketing manager?
A. Political and legal environments.
B. Economic environment.
C. Cultural and social environment.
D. Competitive environment.
E. All of these environments are beyond the control of the marketing manager in the
short run.
As compared to natural accounts, FUNCTIONAL ACCOUNTS:
A. are the accounts to which various costs are charged in the normal accounting cycle.
B. show the purpose for which expenditures are made.
C. include items such as storing, salaries, and taxes.
D. All of these.
E. Both are the accounts to which various costs are charged in the normal accounting
cycle; and include items such as storing, salaries, and taxes.
Which of the following newspaper headlines would be LEAST likely to involve the
political environment?
A. U.S.-Vietnamese Joint Ventures in the Future.
B. Egg Sales Fall as Consumers Switch to Low Cholesterol Diets.
C. U.S. Signs Trade Agreement with Venezuela.
D. FDA Adopts New Regulations for Generic Drugs.
E. Consumers Urged to "Buy American."
The main difference between naming broad product-markets and market segmentation
is:
A. naming is a computerized process, while segmentation requires more thought.
B. naming is concerned with customers, while segmentation is concerned with product
features.
C. naming involves breaking down markets, while segmentation involves aggregating
customers with similar needs.
D. naming involves looking for similarities, while segmentation involves looking for
differences.
E. None of these alternatives is correct.
Which of the following statements by marketing managers is NOT logical and true?
A. "We are planning to appeal more to Hispanic consumers, since this group has surged
and is now over 15 percent of the population."
B. "We're building supermarkets that will appeal to Hispanic consumers; it's a big
investment, but the Hispanic population in the U.S. spends nearly $1 trillion a year."
C. "We are adapting our diaper promotion to target African American and Hispanic
parents, since the birthrate in those groups is higher than for whites."
D. "We will target Asian Americans in California, New York, and Texas since over half
of their population in the U.S. is concentrated in those three states."
E. "We are going to appeal to the African American group because it is a large,
homogeneous target market."
Regarding product life cycles, a good marketing manager knows that
A. entirely different target markets may be involved at different stages of the product
life cycle.
B. a product that doesn't get beyond the introduction stage is still likely to be very
profitable.
C. industry profits are increasing well after sales start to decline.
D. once a market goes into sales decline, oligopoly conditions set in.
E. All of these alternatives are correct.
Vision Co. manufactures and sells tea, coffee, desserts, shoes, and sporting goods. All
of these products are its
A. product line.
B. equity products.
C. complementary goods.
D. product assortment.
E. brand family.
A marketing analyst for a chicken processor reports that a rising percentage of people
are eating chicken because it has less fat than beef. Clearly, this firm's opportunities
may improve with this change in the
A. technological environment.
B. cultural and social environment.
C. economic environment.
D. political and legal environment.
E. competitive environment.
Wiz Bang Foods put together data to measure sales performance by region of the
United States. The Southern region included 25% of the U.S. population and was
expected to deliver a similar share of Wiz Bang Foods' sales. This region ended up
delivering 30% of the company's overall sales. The performance index for the Southern
region would be:
A. 120.
B. 83.
C. 117.
D. 1.17.
E. .90.
Physical distribution differs from logistics in that
A. logistics deals with storing and physical distribution does not.
B. logistics uses JIT to coordinate activities among firms and physical distribution does
not.
C. logistics includes customer service decisions and physical distribution does not.
D. logistics includes transporting goods and physical distribution does not.
E. physical distribution is another common name for logistics.
Which of the following is a characteristic of agent wholesalers?
A. They are more common in domestic trade than in international trade.
B. They operate at relatively high costs.
C. They own the products they sell.
D. They normally specialize by customer type and by product or product line.
E. None of these is a characteristic of agent wholesalers.
Which of the following statements about the competitive environment is FALSE?
A. Competition-free environments are rare.
B. Marketing managers should choose strategies that avoid head-on competition.
C. A firm that has a marketing mix that its target market sees as better than its
competitors' has a competitive advantage.
D. Over the long run, most product-markets tend toward monopolistic competition.
E. In a competitor analysis, the firm's first step should be to identify all potential
competitors.
Which of the following is the BEST example of the micro-macro dilemma?
A. Many consumers buy imported cars, even though they say they like American cars
better.
B. High performance cars are fun to drive but may be dangerous to others.
C. Buying an imported car may cost buyers more to buy now but may have better resale
value later.
D. A fuel efficient car may cost more to buy but less to operate.
E. The economy may be growing, but many people still are not able to buy a new car.
For a home-based purchase of a furnace, the consumer decision process typically
begins:
A. when home heating commercials create product awareness.
B. when a furnace sale is advertised in coupon mailings.
C. when the first cold day of winter sets in.
D. when a malfunction occurs in an older furnace.
E. every ten years.
__________ is one of the most criticized of all marketing activities.
A. Packaging
B. Advertising
C. Placement
D. Pricing
E. Production
Which of the following are TRUE with respect to greener packaging?
A. Sustainable packaging usually lowers producer costs.
B. Greener packaging is required by the Federal Fair Packaging and Labeling Act.
C. Consumers are caring less about making greener choices.
D. All of these alternatives are TRUE.
Parents who spent years limiting purchases to home necessities and kids' entertainment
often embrace more luxury-oriented buying patterns later in life. This phenomenon is
related to:
A. changes in purchase situation.
B. selective retention.
C. reinforcement.
D. changed physiological needs.
E. empty nester behavior.
A complete marketing information system includes each of the following except:
A. data from internal sources.
B. marketing models.
C. decision support systems.
D. a data warehouse.
E. All of these alternatives are correct.
Vending machine
A. sales now account for almost 20 percent of consumer spending.
B. retailing requires a lower margin to cover costs than for comparable products sold in
stores.
C. retailing has been declining.
D. sales now include higher-margin products like bathing suits.
E. None of these alternatives for vending machines is correct.
Franchise operations provide a good example of:
A. vertical integration.
B. contractual vertical marketing systems.
C. administered channels in which the retailers are the channel captains.
D. direct-to-buyer channels.
E. None of these is a good answer.
